MOD-PAC CORP. Selected by Proforma as a Preferred Supplier; Multi-Million Dollar Agreement with Leading North American Print Dis
January 03 2006 - 8:00AM
Business Wire
MOD-PAC CORP. (NASDAQ: MPAC) a commercial on demand printer and
manufacturer of custom paperboard packaging, announced today that
they have signed an agreement with Proforma to become a "Preferred
Limited Partner" (PLP). A PLP is a designated preferred supplier
for Proforma's large distribution network. Proforma is one of North
America's leading distributors of promotional products, printed
materials, business documents and e-solutions. Proforma has
recently been ranked as the second largest distributor of printed
materials by industry publication Print Solutions. The contract
names MOD-PAC as a preferred supplier for Proforma's more than 650
office locations throughout the United States and Canada. Print
distributors supply businesses of all sizes with a variety of
commercial print products, such as business forms and documents,
marketing and sales materials, binders, catalogues, custom
packaging, print management programs and promotional products, with
the top 100 distributors in the industry generating over $2.3
billion in annual sales. Proforma's 2005 sales will exceed $280
million, with more than $100 million in commercial print sales.
Daniel G. Keane, President and CEO of MOD-PAC comments, "We have
been aggressively targeting the print distribution industry because
we recognized the potential to better address this severely
underserved market. Nationwide print distributors, such as
Proforma, must often rely on a patchwork of small, geographically
constrained printers or are underserved by large regional printers
who can't deliver on their promises. MOD-PAC has the resources,
speed and expertise needed to service this large market and deliver
quality products in a geographically diverse area." Mr. Keane went
on to say, "Becoming a preferred supplier with Proforma is a
significant win for us. We expect this program to ramp-up very
quickly and will be working with the Proforma staff to educate the
over 650 franchise owners on our products and services. We will
provide a branded web portal to enable Proforma business owners to
easily identify and order the desired MOD-PAC products. We
anticipate $2 - 5 million in revenue in the first year of this
contract and anticipate growing our share of their business over
time." ABOUT MOD-PAC CORP. MOD-PAC CORP. is a rapidly growing, high
value-added print services firm operating a unique low-cost
business model. MOD-PAC's strategy is to capture the market
currently served by thousands of printers with under $5 million in
annual print volume. By leveraging its capabilities to innovate and
aggressively integrate technology into its marketing and
operations, and to provide economically-priced, short run, on
demand print products and services within its superprint facility,
it can capture a large part of a $25 billion small print shop
market. Consistently outpacing the printing industry in growth and
profits, MOD-PAC's key differentiator is its success at being a
just-in-time producer of short-run, quality on demand print
products. The Company applies lean manufacturing processes coupled
with state-of-the-art printing technologies to challenge its
competition and expand its market share. Additional information on
MOD-PAC can be found at its recently re-launched website:
http://www.modpac.com ABOUT PROFORMA With over 25 years of
experience, Proforma remains clearly focused on meeting the graphic
communications and business solutions needs of North American
businesses and organizations. As the second largest provider of
promotional products, printing, business documents, and e-solutions
in the United States, Proforma has received numerous awards and is
recognized by ASI as one of the ten largest distributors of
promotional products. Proforma serves over 30,000 clients through
more than 650 member offices in North America. The Proforma
Worldwide Support Center is located in Cleveland, Ohio. Additional
information on Proforma can be found at: www.proforma.com Safe
Harbor Statement: This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. One can identify these
forward-looking statements by the use of the words such as
"expect," "anticipate," "plan," "may," "will," "estimate" or other
similar expressions. Because such statements apply to future
events, they are subject to risks and uncertainties that could
cause the actual results to differ materially. Important factors,
which could cause actual results to differ materially, include
market events, competitive pressures, changes in technology,
customers preferences and choices, success at entering new markets,
the execution of its strategy, marketing and sales plans, and other
factors which are described in MOD-PAC's annual report on Form 10K
on file with the Securities and Exchange Commission. The Company
assumes no obligation to update forward-looking information in this
press release whether to reflect changed assumptions, the
occurrence of unanticipated events or changes in future operating
results, financial conditions or prospects, or otherwise.
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